Francesc’s Weblog » FXCM launches OCO entry orders to meet NFA’s FIFO rule

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FXCM launches OCO entry orders to meet NFA’s FIFO rule

Posted on July 7, 2009 at 11:14 in Forex, NFA new requirements by Francesc

The National Futures Association (NFA), our industry’s self regulatory organization in the United States, has informed all Forex Dealer Members, which includes FXCM, that it has adopted new Compliance Rule 2-43(b) regarding forex trading. Read Compliance Rule 2-43(b) http://www.nfa.futures.org/news/newsNotice.asp?ArticleID=2273
This rule requires orders be executed First In, First Out (FIFO). FIFO requires that when multiple positions are held in the same currency pair, the position which was first opened will be the first to be closed. This will prevent stop-loss and limit orders from being placed on individual tickets (orders and positions).
FXCM has always encouraged active risk management through the use of stop-loss and limit orders. The stop and limit orders that have been available through the “Open Positions” window are two entry orders that are linked to an individual open position. If a stop or limit order is triggered, the other is canceled. The FIFO rule prevents stops and limits from being attached to an individual ticket.
FXCM is introducing a new feature called OCO (One Cancels the Other) entry orders, which will provide traders with the same functionality as they have been accustomed, except that they are not linked to any positions.
Watch This Video Presentation To See How To Manage Your Risk Using OCO Entry Orders.

FXCM U.S. — How to use Stops and Limits after July 31

Tags: FXCM OCO (One Cancels the Other), NFA FIFO rule, Stop and Limit Orders after July 31

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